Vending The Future of Vending
As the vending industry prepares to celebrate its 2000th birthday at AVEX 2015 next year, CEO of the Automatic Vending Association, Jonathan Hilder looks at what lies ahead for vending, with a particular focus on technology and the growing demand for cashless payment systems.
O
ver the years, one of the reasons that the vending industry has grown is because it has never been afraid to change and evolve in order to meet and exceed its customers’ expectations.
Heading towards the 2000th birthday of vending, which we will celebrate at AVEX 2015 next year, it’s easy to feel a little poignant about leaving the past behind when such significant changes lie ahead for our industry.
As a society in general, the digital era is really picking up pace and paying for goods is a big part of this. To ensure the service levels facilities managers receive remain high, it is vital the vending industry adapts in order to embrace digital, cashless payment systems.
Recent research suggests that around half of consumers don’t carry cash, which coincides with the rise in popularity of contactless payments. Some even believe that the cash card may cease to exist in the future as mobile technology gets increasingly advanced and smartphones become the new payment currency. As well as advances in cashless payment systems, in 2015 The Royal Mint will agree the design of a new £1 coin, which will be in circulation by 2017. As the old £1 coin is phased out, becoming obsolete by 2018, it is critical that the vending industry is prepared for the fundamental changes that lie ahead. The AVA recently held a conference in Manchester for its members to discuss ‘The Future of Payment Systems’. The lively debate, with special guests including Adam Lawrence of The Royal Mint and Nick Mackie at Visa Europe, reinforced the message that the vending industry was on the brink of huge change, and this was due to growing consumer demand for electronic payment options. If we are to respond effectively to these new consumer demands, and future-proof our businesses and the sector, then we must utilise the latest advances
Building & Facilities Management – October 2014
in technology, share best practice and knowledge and evolve together. For any facilities manager,
understanding what return to expect on their investment is an important part of the decision to upgrade vending machines and offer a cashless payment option. As a guide, by offering contactless in a snack machine in a high traffic area, you will open up the market to the estimated 54 per cent of consumers who do not carry cash. This means you could see the machine’s weekly takings nearly double. According to the speakers at our Business Day in June, vending must evolve in line with advancing technologies. Unanimously, their advice was to pair contactless payments with those cash payment options already in place. Not only will this help to retain and keep current customers engaged, it may also bring back those who have been lost to nearby shopping outlets where cashless payment for low value purchases is possible. Consumers’ growing comfort with contactless electronic payments for small purchases at places such as quick service restaurants, online websites or high street shops has become the norm and what is expected. This shift to cashless payment is exemplified with the roll out of cashless on Transport for London recently – Oyster cards and contactless payment are now the only way to pay for transport in the capital. And contactless payment technology is already available with the new iPhone6 and a small selection of other recognised smartphone brands too. Integrating this technology means a smartphone can be swiped in the same way as a card to pay for goods where the contactless symbol is displayed. In compatible smartphones, a user simply links their phone to their personal bank account and
money is debited from there directly. With such large, influential companies embracing contactless payment, it’s not surprising that at our Business Day, David Hensley, head of cash services at The Payment Council, predicted that cash payments will be overtaken by cashless by 2015. The vending industry’s finest USP is the convenience it guarantees consumers in public spaces. As a sector, we have constantly innovated our offering to ensure this continues and now, more than ever, is no exception. As a facilities manager, everything points towards upgrading or selecting a vending machine that offers future- proof technological advances to ensure revenue is maximised and the unbeatable convenience and service that vending has become renowned for is maintained. So, a facilities manager’s priority must now be to provide a payment option that is most convenient for the consumer as well as providing a system that meets its needs in terms of product selection and service, which to date, has been the main and most valuable feature of the vending machine. With 2000 years of experience under our belts, it is undeniable that vending is undergoing the most significant evolution in its history, something we intend to celebrate at our biggest event ever, AVEX 2015. At AVEX 2015 you will find the
industry’s key innovators showcasing the latest machines as well as being on hand to offer invaluable advice on the costs and logistics involved in upgrading or replacing a vending machine to ensure it continues to provide the best service possible and is more profitable than ever. To book tickets for the event contact Rosie Mills at the AVA on rosie@ava-
vending.co.uk Tel: 01494 568963
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